from bloomberg world headquarters in new york, good afternoon. im betty liu. here is what we are watching as we wrap up the trading week. markets headed for their third straight weekly advance. third-quarter fundraising numbers are in for the presidential candidates, and once again, outsiders like ben raising theut establishment. oscar muni as has been going on a listening to her. -- nuñez has been going on a listening tour. we look at the progress he has made so far. about an hour from the close of trade. as president obama continues to

hold his news conference, phil mattingly, give us some of the highlights. phil: just recently saying the relationship between the u.s. and south korea is on firm footing. that answers some questions about the growing relationship between south korea and china. the president declined to vicent on whether president joe biden would run for president. thesein the talks between two administrations is an important component. the president saying he is not going to comment on hillary clinton's opposition to the transpacific partnership. that is some expectation if a second round of talks occurs, south korea would want to be part of that. betty: he and the south korean president shown walking off and the press conference.

he declined to talk specifically about hillary clinton and her opposition to this trade agreement. do you expect that there is going to be any more fallout from the white house on that? phil: democrats in general were not supportive of this process, as we head into an election year. the president had some cover from hillary clinton as they were dealing with the fast track process of considering this trade deal a couple of months ago. he doesn't have that anymore. of the agreement being reached, lawmakers will vote on this. there are very specific elements of this in this party. that the consider front runner for the presidential nomination is not in support of this. hillary clinton's opposition

does not help. betty: phil mattingly outside the white house as the president is wrapping up the press conference with his counterpart in south korea. we are about an hour away from the close of trade. let's head to the markets desk where julie hyman has more on the markets. anybody'sis still guess where we will close. it is witching day, explorations of futures and options contracts, so we get a little ofatility -- expirations futures and options contracts, so we get a little volatility going into the close. it feels more like a micro van a macro day. consumer confidence beating estimates. factory output missing estimates. be an appears to individual stock story as we continue to get earnings reports.

want to look at some individual stocks. mattel has been on the rise. earnings missed analyst estimates, but the commentary from the ceo appears to be buoying the stock. rising, even after the company came out with a disappointing outlook. that is because it is getting a new board member who has been pushing the company to spin off its china division. finally, general electric beating estimates with its earnings. betty: julie hyman at the markets desk. let's get a check on the headlines. regnier's nco has more from the news desk. >> hillary clinton is urging congress to fix a law that could cause medicare deductibles to next by -- jump by 50%

year. she says she is deeply concerned that there will be no cost-of-living increase in social security benefits next year. medical bills are set to increase for many unless congress acts to prevent it. judges considering whether to dismiss charges against a militant killed in a fatal attack in benghazi, libya. attorneys for a suspected libyan militant say prosecutors have over reached on some of the charges facing their client. he is accused of murder and providing material support to terrorists, among other charges. a federal judge will decide the fate of planned parenthood funding in louisiana today. beennor bobby jindal has trying to cut off state funding to planned parenthood since controversial videos were leaked by an antiabortion group. funding could be cut off as early as next week.

the donald trump campaign bus is making another stop in massachusetts. this comes after a trip to virginia and an interview with when the republican front runner lashed out at super pac's. take a listen. donald trump: these packs are the most disgusting thing you have ever seen. they control the candidates. when the candidate says they then't -- don't speak to pac, i guarantee you, every one of them does it. our campaign finance laws are a disaster. mine is simple. i pay my own money. almost 74,000 people have donated to the trump campaign. cars and drivers are still stuck in massive mudslides on i-5 in california.si

you can find the latest news on bloomberg.com. betty: thank you. over $4s have added trillion to global stocks this month, quite a turnaround. companies are still struggling on the top line, and that could have repercussions down the line. joining us is a global market strategist at j.p. morgan asset managements. three quarters of companies have reported earnings that have beat . isn't that good news? >> it's definitely better than but expectations have been lowered so much at this point, it would be like me putting a piece of wood on the floor and asking you to step over it. only about 35%-40% of companies that have reported have beaten revenue estimates.

but we can't get another rally without earnings momentum, right? >> exactly. i think the catalyst will really be the fourth quarter earnings season. we are expecting to see positive earnings growth, somewhere to the tune of 7%-10%. following that, i think earnings will be closer to 3%-5%, but positive earnings growth is what the market is really looking for. when you buy a stock, you are paying for a share of projected future earnings. betty: why so positive in the fourth quarter? that is when the year-over-year comparisons become much easier. -- fourthquarter quarter of 2014 is when we saw a earnings begin to deteriorate. the second point i would make, and i think this is slightly more important, is that it is more about rate of change than

levels when it comes to these headwinds. oil fell very quickly. been able toe retool and adjust to an environment of lower energy prices and a stronger currency. with those adjustments in place, they should be able to return to profitability. betty: what about volatility? >> this is what everyone has been waiting for. we spent three years without a 10% or greater correction on the s&p 500. at the end of august, we finally saw it. people were talking about a looming correction, and we finally -- and yet people were acting surprised. itple were preparing for mentally, but i am not sure they were prepared for it. the environment we are coming out of with double-digit returns and single-digit volatility is not normal. what is normal is more muted returns and higher volatility.

the fed remaining relatively uncertain as to what the trajectory of the funds will morehat is only leading to global uncertainty and higher volatility. betty: have we bottomed? are we in the middle of a bottoming process? towe have a second bottom get to? >> things have been bouncing around over the past few weeks. we saw that sharp draft in august. we are still moving a little too much for me to really be comfortable. we are seeing these 1% plus swing days, but we are seeing a bid for equities somewhere between 1950 in 2000 on the s&p 500. that will stay the same until clarity improves -- volatility improves or the fed provides some clarity. betty: will the clarity be when they raise rates? >> that will be the big one. i think the fed can do a better

job presenting a unified front to markets. individual views about monetary toicy are only contributing the uncertainty. if the fed comes out and says look, if the economic data supports it, we will hike rates. i think that message will cause markets to calm down a little bit. betty: thank you. david is a global market strategist at j.p. morgan. we will get a direct read on in. markets and the economy an exclusive interview with jamie dimon on monday at 9:00 a.m. much more ahead in the next 20 minutes. russian hackers target dow jones on insidernformation trading. bloomberg news has learned that this is much more serious than the cyber attack against dow jones that was disclosed last week. is money going to determine the

next president of the united states? in the race for cash, people like ben carson and ted cruz are outpacing jeb bush, but clinton is still the winner. there are questions about whether technology is accurate -- whether the third us technology is accurate enough to become widespread. ♪

betty: good afternoon and welcome back to the bloomberg market day. time for a look at headlines. the ceo of united has been admitted to the hospital. oscar nuñez suffered a heart attack.

he became ceo last month. the airline says it is tontinuing operate normally. we will have more on this story at the bottom of the hour. steve ballmer has bought into twitter. the honor of the clippers has confirmed that he owns a 4% stake in the network. filing requirement for within 10 daysre of acquisition. analysts at goldman sachs have been fired for allegedly cheating on tests's. this is according to a person familiar with the matter. you can always get more business news at bloomberg.com. a group of russian hackers infiltrated the servers of dow jones and the wall street journal.

hackers used the stolen information to trade stocks before news broke. the fbi and secret service are of the an investigation attack. this is worse than we thought. >> dow jones did disclose an earlier hackwork customer data was compromised. or mays hack, which may not be linked to that, is actually much more serious. we have russian hackers servers to get access to information that can be used before it is released to the public for trading. this is a new phenomenon we are seeing in insider trading. next wave of insider trading. we had a case last august where we had nine ukrainians indicted for basically doing just this. they went into the servers of

several newswire companies and press releasest on company earnings and sell them to traders. for or five traders made $100 this over a few years. it's very profitable. analysts,he days of bankers, lawyers, meeting in the parking lot and trading information for stock tips and so forth. it is really the new generation of insider trading, where you use hacking to do it. what: and you don't know they have done with the information. carrie: the story is in its early stages. hopefully, we will have more information as we go on. betty: you have another story about a georgian bank linked to vladimir putin. carrie: this was an interesting story we put out today.

abouthe bank is examining that aren in trades done in a russian office where for a clienttocks and they are executed simultaneously in the london office. .t's totally legal however, the bank has discovered aout 12 accounts, of which couple of putin's closest allies, who became billionaires under putin's reign, who play putin, they might be the owners of some of those accounts. what is important is that the department of justice is looking at these trades to see if the bank violated any anti-money laundering controls. you have all of these issues swirling around the trades.

it definitely sounds very murky. thank you so much, keri geiger of bloomberg news on that story. , the polls don't count, the money does. ben carson is out raising candidates like jeb bush. we dive into the money race next. ♪

betty: welcome back. let's turn to politics. our favorite subject these days. checks are pouring into the presidential coffers and the federal election commission keeps track of all of it. joining us now with more is john heilemann. it seems like a clear trend here, right, where the outsiders get the money?

john: when i was in las vegas, i kept betting red because i thought red was your color, and every time i bet red, i would lose money. then i bet your birthday and i lost. you are not my lucky charm in las vegas. betty: ok, but there is a lot of money flowing in. john: there is a lot of money flowing in. some candidates are doing well. some are not doing some well. carson raised $10 million in the second quarter. time he raised $20 million, in the third quarter. doubling -- doing my math right , his fundraising at the same time he is rising in the polls. especially striking, he is way ahead of someone like jeb -- who

was supposed to be the fundraising juggernaut. $13 million is a respectable hall, but he is spending money like a drunken sailor. his burn rate is the highest of all the republican candidates. he is bringing a lot of money in, but it is going out pretty fast too. you have a lot of nervous donors now as his poll numbers continue to decline. the bush saying is perilous. betty: it is getting a little -- isn't bush by far still the most well-funded candidate? john: if you add in the super pac money. his super pac has over $100 million. you cannot time, coordinate with your super pac. they cannot talk to each other by law.

the supery working on pac knows jeb bush's mind. there is a reason you want to have hard dollars in your campaign, because you have direct control over that money. that's why someone like ted ,ruz, who raised $13 million not doing that much better in the polls, has a big super pac as well. cruise is doing well. jeb bush is not doing as well as he expected to. big dealio made a about how he raised $60 million, but $60 million is not that much -- $16 million, but $16 million is not that much. bush's burn rate so much higher? john: if you think you are the front runner, you build a battleship campaign, a cadillac , and then you go look,

i am a volkswagen, not a cadillac. ted cruz is an underdog who is focused on one state. he has taken his campaign to iowa rather than focusing on the whole campaign. hillary clinton is ahead by far. aheadshe is not that far of bernie sanders. that is the big story on the democratic side. bernie sanders is a democratic socialist, as i am sure you are aware. 26has managed to raise million dollars. nobody in the world thought bernie sanders would be at parity with hillary clinton. hillary gets a lot of rich people and has to do , bernie is getting

small donations online. he is not having to spend money to raise money. no sorrow for hillary clinton, if is raising plenty, but you raise small dollars, you don't have to spend as much time raising it, you don't have to travel as much to raise it, and because of the federal maximums, if somebody gives me $500, then another $500, then another $500. hillary clinton's donors are so big, once they write a check, they can't give again. betty: still ahead, once the sarahg of silicon valley, theranos is being tested. we have more on the controversy. ♪

♪ betty: live from bloomberg --dquarters, i am julie: betty liu.

we have more from the news desk. >> good afternoon, a close the border with croatia tonight at midnight, because of refugees. there will be a fence, razor wire on the border. many have entered hungary this year trying to reach germany. and some of the powers says that iran violated sanctions when it launched a missile last weekend. the u.s. is preparing a result -- a report about the sanctions against ironic -- iran. and flexing muscle by airing a base, underground missile where missiles are being stored on launchpads. iran's guardian says it is 5000 meters below ground and one of many scattered across the country.

and at least 37 people killed in a nigeria after multiple suicide bombings targeted homes and a mosque. officials say that three women blasts inst -- villages. they have killed thousands of people since 2009. and the world health organization says that two new cases of people have been reported in guinea, ending two weeks without reports. officials say they may be unable to monitor everyone exposed, but the ebola virus has killed more than 11,000 people in west africa. that is a look at headlines right now, you can find the latest on bloomberg.com. betty: thank you. markets close at the top of the hour and julie has a check on where stocks are trading right now. julie: i want to get to an

interesting story, it just broke this afternoon, have to do is fresh market. the company founder who holds a stake, is trying to make a bid for the grocery store chain. shares have spiked and if they remain higher and we have also seen other grocery store chains get a list. -- lift. if you look at competitors, both big and a small, you are looking at games, sprouts, whole foods, these are at the top of these fresh or premium chains. they are on the rise. i want to take deeper into the industrial group, there have been climbs today, but disappointing results from some companies. withpipelines operators quantum. and kansas city southern,

similar story with numbers seeing a drop. and w.w. grainger, which provides tools to industries. this is in sharp contrast to ge, they came out with a result of being analyst estimates, because , theyength in aviation are gaining 4%. and a reminder as we look at the industrial results, we have industrial production for the month of september, this is on the bloomberg terminal. straightor the second week, a charge in numbers. as well, this brings home why some industrials may be having trouble. the difference between the three we looked at that are declining with general electric, but general etiquette is more diversified and they are diversified geographically, they are exposed internationally. of those other companies are more domestic. so production here is waning,

not good news for those guys. betty: not at all. thank you, julie. their ceofidential, has just been hospitalized after suffering a heart attack, no word on how he is doing. but the parent company declined to comment on this report. the stocks have fallen 3.2%. i will bring in george ferguson from princeton, on this news, he has only been taking reins of this company for a month, said he has not progressed that much, but there is a big task ahead for him with united. they are trying to write -- right some wrongs with the merger. >> there are a couple of different things, one of the most important he has to handle is the merger, which does not seem to have gelled like they

would have hoped. oscar has been going around talking to employees, trying to figure out why united does not , besides that,am he is managing an airline that internationalt exposure of u.s. airlines and that is another challenge, because we saw built a report earlier this week and is the largest challenge for delta has been the international market. so he is under pressure. betty: doing a how long he may be out? >> i do not. united has not provided a lot of details, thoughts are with oscar , but we are not sure right now, we don't know if this will be a short thing or if he will be back in a couple of weeks, maybe united will have to appoint somebody in the interim. betty: this is a moving situation and we do not know what it is, but in the meantime,

things have been put on hold, right? is that correct, he was supposed to meet with labor leaders? >> yesterday he was supposed to meet and i think that is when he was hospitalized, but that is on hold now. i think those were important discussions, trying to gel together to get the continental side to work together with united and oscar will have to do more of that. betty: right. in the meantime, what else has to be done with the business? what is the task ahead for united to make it more efficient? >> i think the good news is that fuel prices have provided a tailwind for a lot of airlines, for earnings. so oscar has the benefit of that, that will provide cash for the company and again united is the most international of the three largest u.s. airlines and we see a lot of pressure in the

international market. they are looking at yields, price paid per mile, so that fell 13% in the asia-pacific region and united has a healthy exposure there. so the more you have in the u.s. , the better you are doing and right now united has the least. he has to think about that and also try to get to the point, where they operate better together, so they are ready to carry customers to where they want to go. i think a little bit of that has to do with morale in the company. betty: thank you, george. now, onto another company. a tech startup with a valuation of $10 billion, it is not under heavy scrutiny. a report questions the accuracy of blood testing technology. they call the report baseless, but on bloomberg earlier this month, the founder talks with

her -- talked about her company. >> making sure that you build a solid foundation, so many technology companies that have grown too fast and in this space you cannot afford to grow too fast, stakes are too high? we think about it city by city, building a framework and building on it so that we can ensure the integrity of service. betty: some critics do not agree. biotechr doctors and scientists have paid attention to this for a long time, because claims sounded too good to be true. i have been asking them for years for data and if they refuse to provide it. they do not play by the rules of science or medicine, they are not transparent. betty: that was a leading expert on blood testing. i went to bring in cory johnson in san francisco with more. corey, how big of a blow it this

for sarah knows -- theranos? ok, it seems we have -- we do not have audio for corey, so just hang on. cory johnson, we will be back with you in a moment. just back in two minutes. ♪

♪

♪ betty: good afternoon, welcome back. cory johnson is that with us -- back with us to talk about theranos. we have your mic working.

>> maybe. let's think about what this is about. there is a 31-year-old ceo, a stanford graduate who was compared to steve jobs, this brilliant secret missing that she wouldn't let anybody see, that she said was a part of -- prick of a finger, she invented this with lots of help. they could do over 200 blood test just a drop of blood. this is the magic missing, which they call edison. they are promising things and trying to raise $4 million at a $9 billion valuation. the wall street journal had a great tory -- story yesterday, saying that a couple dozen of were actually done by the machine, but some of them were send out to other machines

established. at that edison was not doing the magic that the company suggested it would and there was a great piece on this in december rating the same question. betty: explain the fda situation, they look at the machines -- >> they do not have to examine these machines, they do not sell them, but they run tests themselves, but the fda got involved -- they actually asked the fda to get involved and has them, but this is a newer development. and theranos says that they are only running one of the 200 test on the magic machine and all are being done in a traditional way. it raises the question whether it is possible to do the same as all the other companies, with a found be on fox -- impossible. it does not have the contamination that a prick

might. theranos is challenging business lobotomy -- phl obotomy. approvedly one test is by the fda, so what about the others? will they just go back to try to comply or does it not work? fda isn, the role of the unclear, they say that they went to the fda to approve all things they think they can do. but maybe they cannot do all the things they think they can do. it is also important to look at the way that the farming of technology has been, falling in love with this story and running with it without asking basic questions. this is a business with a secret black box, they are not sharing

and saying that they can do something that has never been done before. and people run out and believe it and tries to get more access to this great company and this ceo james -- who seems to have this fantastic solution. i think that there are a lot of farming coverage that looks at these companies in silicon valley. betty: i agree. thank you, corey. now some good news about consumer confidence. preliminary consumer sentiment is up this month, final numbers later this month. this is the first time that the index has moved higher since early summer, wait i -- wage hikes are on the way and lower gas prices. joe weisenthal is here, what did you make of these numbers? i think the volatility that

a big effectt had on the psyche of the american consumer. there could be issues with the economy, data has not been on -- strong, but if you go back a few years, the stock market boom did not coincide with the big economic necessarily, so the flipside is maybe that volatility is not the drag that people thought. betty: maybe, but just a few days ago, you are talking about the sales numbers in september, with were not very -- great, and you are saying that maybe the consumer was not the name -- was not spending. >> there have not been crazy retail sales, but i think that people are looking back at that and debating how much of this is oil related, are sales at gas stations bleeding into other areas? by no means is it a clear

picture and frankly it does not surprise me that you are paying attention, because no doubt it is there -- data is clear. but the idea that the consumer is really rolling over, there is not much evidence. betty: what about big ticket items? joe: that is an interesting item, the number of consumers who could be interested in big-ticket items is up and that is not what you would expect to see in this economy, we are talking tvs, sciences, it seems like a good sign. betty: you feel comfortable. you feel like the paycheck is secure and it could go up. joe: exactly. betty: thank you, joe weisenthal, he is on "what'd you miss?" coming up. and much more ahead, the market close in just a few moments.

we will look at stocks and how they fared today. ♪

♪ betty: welcome back to "bloomberg market day", i am betty liu. the markets will close in just a few minutes to julie has a look at what was fluctuating today. julie: we could have a higher those -- close for stocks, we have looked at a lot of bouncing around, we are looking at contracts closing or -- for -- but overall a positive tone. i want to talk about the s&p 500, it look like it will rise for the third straight week, a gain of three quarters of 1%. and we have looked at stocks probably gain as we have had worse than estimated data pushing out a federal reserve rate increase.

that helps utilities to become the best-performing sector of the s&p 500. it is a better than 2%. the worst performing group, the industrials. there is a hose of worse than estimated earnings, or maybe preliminary earnings may number of companies, for the industrials they saw a sharp decline. of theis week, in terms bond market, we have seen people putting out expectations for raising rates, so if you look at what happened during the week, that yield fell a little bit. level reaching that 2% for the downside and a similar action for the dollar. it is reflecting movement from yields. crude oil rebounded today, but through the week we saw a decline. we have seen a rebound with crude oil and commodities, but i came to an end that week -- this

week. data showing that supplies are ample, remember we got inventory data showing the boom and it is larger than it did -- than expected. it seems like at least when it came to the stock market this week, there was a more risk on environment. betty: it was. julie: it did not help the oil market, obviously. but it was interesting that we saw between stocks and bonds, that risk on the environment. betty: we will look at a lot of companies, one stock in particular that moved today, it was a pharmaceutical company based in boston. it plunged today, causing trials to halt,erimental drug after a patient died from the study. people have described as chart,

we want to look at this. >> simply because of the extreme move, this was a stock that tumbled on monday and tuesday, today it took another hit. that is why the result of the trial was front and center. this is obesity drugs, we have seen the make and rose. they are all getting approval for this drug in the coming years, they hope to join him and now there is a austan about -- quseestion. betty: one thing like that can completely decimate the stock. >> absolutely and with smaller companies, whatever happens to them can really make or break the shares. betty: of course there is overhang for biotech stocks right now, the overhang of

regulation and pricing, that is expected to raise again this week when prosecutors subpoenaed -- pharmaceuticals about practices. some analysts say that it was perhaps a turning point for biotech more broadly, because ,espite the news on valiant they did not do so poorly. there was a little bit of relief, democratic contender did not have project pricing at the upate until we saw stocks go . maybe we are looking at the end of the wholesale. julie: it has been frothy. now another chart, dave, that he wanted to look at, brookshire. there are performance was in hedge funds. >> warren buffett came out this week in a conference sponsored by fortune magazine and he talked about activist investors, how they are pushing too hard to

find targets. julie: this chart. >> you are looking at traditional stocks in yellow, compared to others under hedge fund research. the blue line there and the orange line is for activists. when you read the numbers going back to data, you find that berkshire was up 150%, beating out 100% gain or so for the activists. betty: it goes to show, if you are patient, a long-term investor that he will be out these other guys. the positive of returns comes back. >> and i really to companies is key, you want to be part of a culture. activist investors would rather change the culture. and he is a maybe it is not a good idea. and try to sell to companies as an activist, maybe why not.

betty liu there you go. betty: thank you so much, dave. julie whoas well, to will keep her eye on the markets. next, ayou miss?" is big week for stocks on a mixed note. we will be back on bloomberg. ♪

♪ scarlet: we're moments away from the closing bell.

alix: i am alix steel. u.s. stocks closing higher today and heading for an advance, the longest streak of weekly gains and smith. joe: "what'd you miss?". scarlet: it looks like consumers are more optimistic than expected, we will break down the data. joe: and winter is coming, why economists are looking carefully at el niño and what weather could mean for the markets. alix: who has the worst currency in the world, syria, ukraine, venezuela? do not miss the roundup of basketcase currencies just in time for the weekend. we begin with markets, we talk about highs in the s&p 500 closing at in eight week high. for the year, believe it or not, the s&p 50